In the last 3 years, the stock has surged 366% and gave returns of 878% in the last five years.
Alkyl Amines Chemicals, a BSE500 company with a market capitalisation of about Rs 12,480 crore, manufactures and supplies amines and amine-based chemicals to the pharmaceutical, agrochemical, rubber chemical, and water treatment industries. The company’s products include aliphatic amines, amine derivatives, and fine chemicals.
It has an EPS of 44.74 on a trailing twelve month (TTM) basis and the stock is currently trading at a PE of 55.23.
According to the latest shareholding pattern available with the exchanges, promoters own majority of the stake at 71.99%, while the rest of 28.01% lies with the public shareholders.
Among the public shareholders, mutual funds have a minor 0.57% stake in the company, while foreign investors have 2.79%. Retail investors have a combined holding of 18.49% in the company.
For the quarter ended March, Alkyl Amines Chemicals total revenues fell 3% YoY, to Rs 412 crore as compared to Rs 425 crore in Q4FY22. PAT for the same period stood at Rs 48.6 crore.Technical outlook – What should investors do?
Technical analysts say the stock is currently displaying a lower low formation, indicating a downtrend. The stock is trading below all key moving averages on the daily chart, further reinforcing the bearish sentiment.
“In comparison to the overall market performance, the stock continues to underperform. At present, there are no signs of a reversal in the near term,” said Ratnesh Goyal, Sr Technical Analyst, Arihant Capital.
Goyal advises investors to refrain from taking fresh buying positions in this stock. “To manage risks, it is also recommended to set a stop loss at Rs 2,260. For those who are already holding positions, it is essential to closely monitor the market conditions and take appropriate actions based on their individual investment strategies,” he said.
(With data inputs from Ritesh Presswala)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)